Stock Name: AIRASIA
Company Name: AIRASIA BHD
OSK Research expects AirAsia to record lower yields at 19.9 sen/ASK this year due to continued efforts in promoting
discounted airfares to boost the load factor.
Last year, AirAsia achieved a yield of 21.3 sen/ASK, the research house said in its Investment Research Daily today.
It also said that an upside bias on revenue was likely but this could be offset by higher jet fuel prices.
On AsiaAsia's fuel surcharge, OSK Research house said the increase could potentially raise as much as an average of RM7 per pax in additional airfares.
"We have an assumption of RM231 per pax (inclusive of ancillary income per pax) as we anticipate AirAsia to see better yields following the termination of Firefly routes to East Malaysia," it said.
The increase in fuel surcharges will mitigate the impact of rising jet fuel price, which has averaged as much as US$136 per barrel in March against OSK Research's forecast of RM125 per barrel.
OSK Research has maintained its "buy" call on AirAsia with an unchanged fair value at RM4.57. -- Bernama
Company Name: AIRASIA BHD
| Research House: OSK | Price Call: BUY | Target Price: 4.57 |
OSK Research expects AirAsia to record lower yields at 19.9 sen/ASK this year due to continued efforts in promoting
discounted airfares to boost the load factor.
Last year, AirAsia achieved a yield of 21.3 sen/ASK, the research house said in its Investment Research Daily today.
It also said that an upside bias on revenue was likely but this could be offset by higher jet fuel prices.
On AsiaAsia's fuel surcharge, OSK Research house said the increase could potentially raise as much as an average of RM7 per pax in additional airfares.
"We have an assumption of RM231 per pax (inclusive of ancillary income per pax) as we anticipate AirAsia to see better yields following the termination of Firefly routes to East Malaysia," it said.
The increase in fuel surcharges will mitigate the impact of rising jet fuel price, which has averaged as much as US$136 per barrel in March against OSK Research's forecast of RM125 per barrel.
OSK Research has maintained its "buy" call on AirAsia with an unchanged fair value at RM4.57. -- Bernama
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